fed and monetary policy
The Book I chose to discuss was Monetary Policy by Douglas Fisher. Overall, the book was mainly about the problems surrounding the formulation of an effective monetary policy and how government authorities, such as the Federal Reserve try to control the flow of money into the economy. The book explain the most obvious reason why this is so is that a policy which is made to influence the quantity of the medium of exchange affects the transaction in every marketable institution because money is the only thing that can be traded in markets. Economists today tend to feel that, over a the long run, the policies of the Federal Reserve have had both positive and negative effects: Federal Reserve policy decisions have occasionally increased rather than decreased economic instability; minute adjustments of monetary instruments are not productive and may well be destabilizing; over time, Federal Reserve policies that slow down the growth of money supply will reduce the rate of inflation; and some national problems facing the U.S in the 1980's, such as an energy shortage, are supply-related issues that central banks are not equipped to resolve. Nevertheless, in contrary to monetary policy, fiscal policy also determines a lot in an econo
For example, the stock of money which was treated as an exogenous factor determined; by both the Keynesian and neoclassical economists but apparently for different reasons (Fisher 10). Overall, the book's intention was to let the reader become more aware of the transactions and policies of economy. He argues that this is not a wise position to take. What do I mean by this? In each state of the policy problem it is required that correct information be given about the economy and that it is used efficiently. This is because monetary policy makers must rely mainly on influencing the privately own scheduled for loaned funds. Rather than just looking at monetary policy has a way of controlling the money supply there are also problems affecting how well it is conducted. Moreover, whether passive or active they are both important in a number of ways when bound together. A very expansion monetary policy may well lower short term interests rates by flooding the banks and financial markets with loan able funds and yet at the same time may actually raise longer term interests rates by prompting fears among lenders that inflation will soon be accelerating. He discuss certain things that prove to be influential in the model endogenous and outside of it exogenous. The author was very straightforward by letting the reader know what the book was about and stated its main points. I chose this book for many reasons, one in particular is for the course that I am currently taking and that we have spoken bout monetary policy issues and the Role the Federal government has to do with it Moreover, I highly doubt that I would ever recommend this book to someone unless they have had prior knowledge about monetary policies and the Federal Reserve. Fisher stated that economic models serve many purposes and explains that it is use to describe a term call ceteris paribus; it is use to make predictions and to help economists figure out economic problems. This is because the demand and supply for medium term and long term loans tend! to be both much more elastic and much more affected by the public's expectations about future rates of inflation than the supply and demand for short term loans. He stated examples and had graphs to support his conclusion, he did not fail to mention anything that I thought would have helped in the issue being discussed. I found myself getting confused but was able to understand the author's argument by reading each sentence over at least twice.
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Acceptance Essays
